Montea Comm. VA

Ladies and gentlemen, good morning and thank you all for joining our Montea Q1 results presentation. The first quarter shows strong operational performance with EPRA earnings up 6% per share, like for like rental growth of 2.7% and an Occupancy still at the very healthy 99.6%. We also signed or renewed around 30,000 square meters of leases at an average 20% rent uplift, which is not a bad way to start the year. Track 27 remains firmly on track with 88% of the targeted investment volume already secured, started or under exclusive negotiation supported by a disciplined balance sheet. So in short, growth is moving, the portfolio is almost fully led, and our space for growth is proving to be more than just a good tagline. As every trimester, I'm more than happy to present these results together with our CFO, Els, and with our investor relations, Ina. By the way, it's her birthday today. Els will start the presentation with our results, after which I will give a growth update. Ina will elaborate on the portfolio and market circumstances, after which Els will give an outlook, and I will close with our ESG targets. As every trimester after this presentation, The floor is open for your questions, which will be managed by Ina. Else?

Thank you very much, Jo. As a prior result, the EPS went up by 6% year-on-year, driven by organic rental growth, income from acquisitions, pre-lab developments and green investments. And of course, thanks to our clear, disciplined cost control. Looking into more detail into the figures, net rental income went up by 12% to 37.3 million for the first quarter of 2026, driven by a strong like-for-like rental growth of 2.7%, entirely linked to rent indexation. with property and overhead expenses going up by 11% to 5.6 million euros, the operating result before portfolio results increased by 9% to 31.8 million euros, leading to an operating margin of 85% in line with last year's figure. The operating margin of the first quarter is always impacted by a seasonality effect, where 100% of the charges that are linked to subscription tax, but also linked to property insurance and property taxes that are not charged to our tenants, is taken in cost entirely in the first quarter, leading, of course, to a negative impact on the operating margin. This effect will smooth out throughout the year and will fade away, leading to an operational margin target of 88% for this year. And of course we reconfirm our 90% operating margin target for 2027. with financial charges and taxes going up. The EPRA result stands at 26.4 million euros for the first quarter of 2026, an increase by 7% year-on-year, and an EPS of 1.13 euro per share, an increase by 6% year-on-year. The balance sheet of Montea remains prudent and solid, with KPIs that will enable our further growth, a loan-to-value of 37.4%, an adjusted net debt on EBITDA of 7.3 times, an interest cover of 4.1 times, and an investment-grade credit rating, BBB+, with a stable outcome. Looking at the liabilities and the financing costs, the cost of debt is under control with an average cost of debt of 2.2%. Long-term funding with an average remaining debt maturity at 5.4 years and an average remaining hedge maturity at 5.1 years. There's no debt that is maturing in 2026 and the total debt that needs to be refinanced in 2027 amounts to 75 million and is thus limited. Hedge ratio stands at 99.7%. Over to you, Jo, for the growth update.

Thank you. 70 million has been invested over the first quarter, which means that 88% of our total investment volume target under track 27 is now earmarked, leading to a portfolio of at least 3.5 billion by the end of 2027. 90 million of direct yielding acquisitions will be signed and delivered in the upcoming months, all of them at a net initial yield above 6.5%, and the remaining 380 million of investments is fully covered under our available investment capacity within the eight times adjusted net debt on EBITDA limit. Looking at that 70 million today, you see that we are lagging behind compared to 2024 and 2025, which were two years with a lot of investments and developments. The ones that we earmark now, as I said, have an average yield of 6.6%. And if we go into detail, we look into detail, we see that most of them are yielding acquisitions. So compared to the two previous years, There are less in-house developments, but more Yielding acquisitions are to come in the upcoming months and this is mainly linked to our very strong local network of experts they are really able to earmark and to select good quality assets on core locations where we can add value and create value for the portfolio at as I said yields net initial yields above six and a half percent. On the other hand, developments are rather muted. Pre-lets are limited. We see that our clients, if they don't need to take a decision today, they prefer to delay. There is still a select appetite for large-scale developments, but decisions are taking longer, and it's only on very core, core locations. With the crisis in the Middle East, both transport and labor are becoming more expensive, so the search for core locations is only becoming stronger, which is in our advantage. If we look at the discussions we are having on the pre-let or on the development portfolio, it's mainly driven by the e-commerce sector today, where there is still significant growth. Our assets under development, 54 million today, with another 5 million in sustainability projects. The 54, it's two projects. It's the project in Halle, in Belgium, that we are currently developing. And of course, our GV with Beerts for Skechers in Liege. 100% pre-let. I cannot emphasize enough that it's 100% pre-let. And both of them have a 20-year lease duration on first break. When we look at our investments under exclusive negotiations, 111 million are yielding investments, 26 is solar and batteries, and 42 million would be non-yielding land bank. And as I said, 90 million of that of direct yielding acquisitions, we expect to sign them in the upcoming months. Looking at the developments, 117,000 is currently under development. Another 240,000 square meters we hope to bring into development, but only if we have pre-lets. And the remaining land bank is another 1.2 million square meters of GLA we will be able to develop in the upcoming years, which shows again that our land bank is the most crucial Pillar of our future growth 1.4 million square meters of that land bank is yielding at an average yield of 5.9 percent 1.2 million is acquired but not yielding and another 0.8 million 800,000 square meters is under option the total market value of that portfolio is 500 million and And of course, if we bring that into development, we will have an additional growth after track 27 of more than 70% of our annualized rent will come from that land bank, which will create another 330 million of value creation for the portfolio. This brings us to the portfolio updates where I give the floor to Ina, Ina.